Portfolio Construction

We build and manage portfolios designed to meet each client's investment criteria for risk and return. We monitor the effectiveness of our portfolios through:

• Top-Down Strategy Analysis – We evaluate each strategy in which we invest by reviewing the macro-economic and strategy-specific factors that tend to drive performance and risk. We look at qualitative trends in these strategies including capital flows and fund creation. Having developed our own quantitative tools, we then run proprietary optimization models on each portfolio.
• Bottom-Up Manager Analysis – Using a balance of quantitative tools and qualitative analysis, we evaluate the contribution of each manager to our portfolios, in terms of both risk and return, and the developments in each manager's business that can influence our analysis of future success.
• Model and Test – Based on our analyses, we systematically build allocation models for each portfolio and then run a series of tests to determine whether the changes proposed are likely to increase our opportunities for success.